Daiwa owner sees sales slide across all regions

Slowing demand for outdoor sports and leisure products – including fishing tackle – resulted in an 8.7% decrease in sales at Japanese giant Globeride in the first six months of its financial year.

The owner of the Daiwa reported revenue of 67,876 million yen compared to 74,320m in last year’s comparable period. Operating profit was down 30.8% from 9,423m to 6,522m.

In its report to investors on its trading for the six months ended September 30th, it said that there were expectations of a recovery in economic activities in the Japanese economy following COVID.

“However,” it added: “the impacts of the continuously rising commodity and energy prices as well as the depreciation of the yen in the foreign exchange market prevented us from being optimistic about the future.

“The overseas economy, which preceded Japan in terms of recovery after the pandemic, has seen stagnation in that recovery due to inflationary trends caused by the situation in Russia and Ukraine and prolonged monetary tightening policies in North America and Europe as well as a business slowdown in the Chinese economy due to sluggish domestic and foreign demand.”

Net sales in its domestic market was 43,856m (-8.7%) with profit down 34.4% to 4,079m. On a bright note, it reported a lot of orders for its Daiwa AIRITY spinning reel and STEEZ RC bass rod.

Results in other regions across the globe were:

• Americas: net sales 7,298m (-14.7%); profit 98m (-71.7%)
• Europe: net sales 8,174m (-1.9%); profit 427m (-30.4%)
• Asia and Oceania: net sales 24,885m (-9.2%); profit 3,480m (-16.6%)